The LS Group and LIG Group, which are part of the broader LG family, have launched comprehensive cooperation.

LS and LIG noted on the 31st that they signed a memorandum of understanding (MOU) for strategic alliances and comprehensive cooperation between the groups for development and growth on the 28th.

On March 28, the heads of the LG family attend the GS founding 20th anniversary and GS Art Center opening ceremony and are talking. From left: Koo Ja-eun, Chairman of LS, Koo Bon-sang, Chairman of LIG, Koo Kwang-mo, Chairman of LG, and Heo Tae-soo, Chairman of GS. /Courtesy of GS Group

Through this MOU, the two groups aim to create synergies in various business sectors and promote mutual growth. They plan to expand their cooperation to include defense industry areas such as advanced materials and weapons systems technology development, as well as power, energy, and telecommunications. They will also pursue joint research and development, market research, technology and human resource exchanges, and the establishment of joint ventures.

LS Group stated that they plan to form a consultative body as soon as possible to specify alliance and cooperation methods and the implementation schedule.

There are interpretations that LS Group is securing allies in anticipation of potential management rights disputes. Recently, the Hoban Group, the parent company of Taihan Cable & Solution, purchased some equity in LS, the parent company of its competitor, LS Cable & System. Although Hoban Group claimed it was a simple investment, some observers are watching closely for the possibility of future management disputes.